Savings account, interest paid monthly???

SteveSilva

I hope someone can help. I was hoping to put some money into an instant access account, I've read through the savings article but not sure if any of these accounts offer cash cards. Or is it access online only, which would mean transferring money to my existing external current account so that will mean a few days. Not very instant.
Also are these rates paid monthly, which I believe can be advantageous?

Thanks

innovate

I think you might find one or two savings accounts that have a cash card. It doesn't need to take days to transfer savings to a current account, though - most banks offer instant transfers between accounts held with them. So you could use the cash/debit card that comes with your current account.

|Whether you want monthly or annual payment of interest depends on your needs. You literally always get paid the same APR, regardless of when the credit is made to your account.

Suggest you go to Martin's main page about banking and savings for more details (http://www.moneysavingexpert.com/banking/). Also read the disclaimers for the site!

Lokolo

If an account offers monthly and yearly, if the AER is the same no difference is made.

Usually it will be something like:

Yearly 6.25%
Monthly 6.08%
AER - 6.25%

So basically each month you get 6.08% interest but compounding means you will get an overall rate of 6.25%. Whereas the yearly you just get the 6.25%. No difference apart from you pay slightly more tax from monthly I seem to recall. But from small figures its petty pennies.